Category advice

Market Insight

Category advice2019

Tobacco Track & Trace - are you ready?

What do you need to do if you sell tobacco?

The regulations require all retailers to have an Economic Operator Identifier Code (their own unique code registered to their business) and a Facility Identifier Code (a unique code for each store or premises which sells tobacco) in order to purchase cigarettes and hand-rolling tobacco products from 20th May 2019 onwards.

Latest Trends

75% of independent retailers are premium pricing, which is the significant factor driving the decline

Sell at RRP to maintain your business

Top 3 customer service shopper needs:

Availability

Price

Range

The UK is the second largest E-Cigarette market with over 3.2 million vapers (YouGov 2018)

Heat Not Burn tobacco products

IQOS is a heat-not-burn system which promises to be 90% less harmful to smokers than cigarettes

PMI have invested $3bn in the system and in its first year of launch in Japan sold 3 million units

Independents have the opportunity to take advantage by listing HEETS

Cartridges: Pre-filled cartridges used in their respective device

Pod systems are more expensive than liquids but offer consumers a convenient and discrete solution to their vaping needs. Leading brands such as Blu, Vype and Logic cartridges are not interchangeable so a wider range is required.

Liquid Systems: These account for 82% of sales!

Open systems all use E-liquids – and with such a large share of this growing market we strongly recommend you stock a range of E-liquids that are showing strong growth:

Liquids are excellent sales opportunity as most are universally compatible with the majority of open tank systems

Stock a range of price points to cater for all consumers needs

Value £1 PMP – 88Vape

Mid Tier £2 – Pendle Potion

Premium liquids circa £5 – Blu, Vivid, Logic & Cirro

In addition to Tobacco and Menthol, it is important stock a range of fruit and sweet flavours.

Pendle Potion

Manufactured in the UK

£2 Price Mark

58% POR

8 Great flavours

Bestway are rolling out a range of leading Vape Brands – liquids & kit – including Vampire Vapes, Double Drip, Liberty Flights, Vapouriz, Pure Evil, Aquavape, Sub-zero, XO, Innokin etc. This range and pricing allows the independent retailer to tap into the growing vape market by offering 3 for £10 on liquids and still making over 50% POR.

To see further details of this range please see the Bestway website.

Information correct at time of printing

Must Stock Lines

Category advice2019

These are the ‘Must Stock’ lines which shoppers expect to see in a convenience store.

By stocking these lines, you will be meeting your customers’ needs and therefore they will visit your store again.

Leading Cigarette Brands by Region

Midlands

B&H Blue

Sterling

JPS Players

Sovereign Blue

Carlton

South England

Sterling

B&H Blue

JPS Players

Sovereign Blue

Marlboro

Rothmans

London

B&H Blue

Marlboro

Sterling

Sovereign Blue

Mayfair

North England

JPS Players

Sterling

L&B Blue

B&H Blue

L&B

Wales

Carlton

JPS Players

Sterling

L&B Blue

L&B

Scotland

JPS Players

Kensitas Club

L&B Blue

Sterling

Mayfair

B&H Blue – the UK's fastest growing Ultra Value RMC Brand.

(Source: Nielsen Market Track MAT Feb 2019)

Rothmans

Trusted quality brand at an everyday low price.

Players

No. 1 Sub-Economy brand*

*ITUK Estimates Jan 2019

Marlboro Gold

UK's No. 1 Premium Cigarette Brand.*

*Source: Nielsen February 2019

Market Trends – Why you should sell Value Cigarettes and RYO at RRP!

Price Sector Min RRP & RYO are main areas in growth in 2019

The cheapest RRP and RYO continue to grow as shoppers look for value – These are the brands such as Players, B&H Blue, Chesterfield & Rothmans.

The Danger of Premium Pricing

It is evident that after a manufacturers price or budget increase, smokers shop around for the cheapest price, resulting in stores who premium price losing out

As the No.1 footfall driver to convenience stores, this will affect a stores total business

Bestway recommend selling at RRP or less!

Capsule & Mentholcontinue to grow

Symbols & IndependentsCapsule Vol % Share

2016

2017

2018

11.3%

13.1%

15%

Top 5 Crushball SKUs

Sterling

Pall Mall

JPS Players

Sovereign Blue

L&B Blue

May 2020

Menthol and Crushball will no longer be available after this date. Maximise your sales before it is too late.

Players Crushball

is the UK's No.1 Sub Economy Crushball Cigarette (Imperial 2019)

Pall Mall Double Capsule

The UK's first double* capsule brand

Sterling Dual SK

The UK's No.1 and fastest growing capsule brand

Source: Nielsen Market Track MAT Feb 2019

Roll Your Own Best Sellers (RYO)

Amber Leaf

Gold Leaf

Golden Virginia

Sterling

Cutters Choice

Gold Leaf

Choose the right leaf at the right price

Great price points

Smooth and quality smoking experience

The UK's No. 1 Economy RYO brand*

*ITUK estimates January 2019

Fastest Growing RYO Brands

Marlboro

Riverstone

Sterling

Rothmans

Cutters Choice

Riverstone

Easy rolling, high quality tobacco blend. Created in line with consumer preference.

Top 5 Cigar Brands

Café Crème Blue / Signature Blue

Moments Blue

Hamlet

Hamlet Miniatures

Café Crème / Signature Original

New and Fastest Growing SKU

Signature Blue

Signature Blue

As the UK's best selling cigar brand, Signature Blue remains a must stock item for retailers. Since 1 in every 3 cigars sold in the UK is a Signature it offers retailers a reliable profit from its regular and loyal customers.

Moments

The value for money trend in the UK continues to rise with tobacco customers constantly looking for a more affordable option. Moments is strategically positioned to take advantage of this lucrative market by offering the best value on shelf for both Miniature and Panatella size cigars.

Top 6 Smoking Accessories

Swan Filters Extra Slim 120's

JPS MYO Tubes

Poppell Flint Lighter

Poppell Electric Lighter

Rizla Green Cigarette Papers 50's

Swan Menthol Filters Extra Slim 120's

New and Fast Growing SKUs

Raw Classic KS Papers

Swan Extra Slim Filters 120's

Cricket Firepower

Cricket Firepower

The perfect tool to light any fire or candle with safety. All Cricket lighters have undergone over 60 quality tests.